5 Reasons Why You Should Invest in Gold Funds in 2023

The days when you had to be a king or pirate to invest in gold are long behind us. Today, gold still remains one of the most resilient materials on earth and investing in gold can help diversify an investment portfolio and reduce overall risk by balancing out your portfolio and protecting your investments against market volatility.

If you are a conservative investor, buying a gold fund can be a good place to start or to add to your current portfolio. Here’s 5 reasons why.

1. Hedges against inflation. Gold is a smart way to fight inflation because it tends to hold its value and preserve your purchasing power over the long haul, despite fluctuations in the dollar.?
2. Gold funds have a low correlation to stocks and bonds. More specifically, a negative correlation to the US dollar. We will explain what this means in this thread.
3. The price of gold has been on the incline since around November 2022. In the last year, the gold fund has gained approximately 14.65% in returns globally.
4. Ndovu offers a gold fund that has gained 17.84% in the last months when capital markets have been losing value.
5. Analysts and experts across the globe expect gold to hit record highs in 2023, gaining up to 20% by the end of 2023, so now is the time to invest to benefit from expected gains.

Now let’s get a little deeper into it to make it all make sense.

What is a fund?

Investment funds are products created with the sole purpose of gathering your capital (cash or liquid assets), and investing it in a portfolio of financial instruments such as stocks, bonds & other securities.

What is correlation in investment portfolio management?

Correlation in investing measures how securities (for example) move in relation to each other. It’s used in advanced portfolio management and has a value between -1 and +1.

Gold funds have a negative correlation to the US dollar which means when the USD loses value this strengthens the value of gold funds and vice versa. This is why it's beneficial to add a gold fund to your portfolio.

Given we expect markets to get worse before they get better, we recommend investing in the gold fund to diversify your portfolio.

Ndovu offers a gold fund that has gained 17.84% in the last six months when capital markets have been losing value.

Sign up on ndovu today to gain access to the ndovu gold fund and invest!